The Mexican dining scene is hotting up in the UK. A decade ago, most outlets were gimmick Tex Mex restaurants, with sombreros and ponchos, and frozen margaritas on tap. Today, several fast-growing high-end brands are bringing an altogether different kind of Mexican gastronomy to diners, appealing to a more sophisticated palate.

Chilango is one of the new wave of Mexican players fighting for dominance of the high street. The company, which was founded by ex-Skype executives Eric Partaker and Dan Houghton in 2007, currently runs seven outlets in London but is poised for a major push over the next two years.

On Wednesday, Partaker and Houghton will launch a new “burrito bond” through the crowdfunding platform Crowdcube, to accelerate the growth of the brand. The bond, which will pay investors 8pc interest through bi-annual payments, is hoped to raise between £1m and £3m.

The cash will enable the pair to open three further restaurants in central London this year, with a national roll-out planned over five years. “We want to add a handful of restaurants each year after,” says Partaker. “Longer term, we think that people will buy into Chilango the world over. We want to become a household name.”

Chilango – slang for a resident of Mexico City – was inspired by the Mexican eateries on the West Coast of the US, and in Partaker’s native Chicago. “I grew up with amazing Mexican food,” he explains. “In Europe, it was all mediocre. People would tell me the food was going to be really good, and I’d think, 'God, this is awful’.”

Partaker decided to test the quick-service Mexican food model that had been so successful in the US. He and Houghton quit Skype in 2005 to open Mucho Mas in Islington. They put in £60,000 of their savings, raised £85,000 from friends and family, and secured a bank loan for a further £145,000.

“Food is God” at the brand, says Partaker. Chillis are sourced from a farming cooperative in Mexico, not UK wholesalers. “You have no idea how long those chillies sit in a warehouse,” says Houghton. Top chefs including Michelin-starred Nuno Mendes, formerly of El Bulli, helped develop the menu. Diners have been voting with their wallets: turnover was £4.3m last year.

They weren’t the only entrepreneurs riding the Mexican wave, however. Wahaca was launched by Thomasina Miers that same year. Benito’s Hat sprang up a year later. Barburrito was already creating its own Mexican revolution in the north of England. Chipotle, which boasts more than 1,500 restaurants in the US, has now opened six restaurants in the UK.

The move is reminiscent of Starbucks’ arrival in the UK. “Chipotle’s entrance to the market bodes well for the sector,” says Partaker. “But we have to make sure we remain in the top three, otherwise we’ll be squeezed out.”

The burrito bond will enable the entrepreneurs to expand quickly. The so-called mini bond differs from traditional retail bonds, corporate bonds and gilts as they are unlisted products that cannot be traded in secondary markets.

According to Luke Lang, co-founder of Crowdcube, Chilango is paving the way for a mini-bond revolution. “The company has all the ingredients that we were looking for from our mini-bond launch partner,” he says. “We’ve already had an extremely positive response from interested companies and have several mini-bonds in the pipeline.”

“Burrito bond” investors will receive a range of perks. All will receive a couple of free burritos, but for those investing £10,000 or more, a Chilango Black Card will secure them free food at the restaurants for four years.

“We serve 15,000 people a week and there are 70,000 subscribers on our email database,” says Partaker. “Lots of people from Deloitte and Goldman Sachs come into our restaurants in the City and we get investment inquiries every day. We have faith that we’ll see a good uptake.”

The bond isn’t the only weapon in Chilango’s arsenal. It also boasts an enviable list of investors and advisers. Simon Kossoff, the CEO of Carluccio’s, is heavily involved, as is former MD of Costa Coffee Mike Dowell. David Haimes, former CEO of Itsu, has now joined the management team. Chilango is one of the best-connected restaurant brands in the business.

After seven years of tweaking the brand, perfecting the menu, and building grassroots support in London, Chilango’s founders are confident they can compete with other fast-growing rivals.

“Pret only had one unit for the first four years and look how successful that has become,” says Partaker. “Now, we know what works and what doesn’t, so we can grow much more quickly. We’ve earned our way into this phase and we’re going to be fiercely competing.”

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